Jupiter Asset Management Sells Off Ripple’s XRP Investment
London-based Jupiter Asset Management (JUN) was forced to sell off its $2.58 million investment in Ripple’s XRP due to regulatory issues that led to the cancellation of the investment. This decision was made during the first half of 2023, despite the firm having assets under management of over $65.8 billion.
Jupiter’s Crypto Investment Blocked
The compliance department at Jupiter blocked its investment team from holding a cryptocurrency exchange-traded product in one of its Irish Ucits funds. This move illustrates the varying regulatory approaches to cryptocurrencies within the EU. At a time when many investment managers want to include cryptocurrencies in their funds, there is a lack of uniformity across the EU.
In the first half of 2023, Jupiter’s Gold & Silver fund invested $2.58 million in 21Share’s XRP. However, during their regular checks, they became worried and decided to cancel the investment, resulting in a loss of $834.
Why Jupiter Stepped Back
The primary reason for the abrupt cancellation of the investment lies in the divergent crypto regulations across Europe. Jupiter’s Gold & Silver fund, based in Ireland, faced restrictions prohibiting crypto investments for UCITS funds.
Perhaps Jupiter’s situation serves as an example of the need for standardized rules covering crypto investments, especially at a time when the crypto market is flourishing following the introduction of new crypto products in the U.S.
Regulatory Difference
While countries like Germany allow more flexibility in crypto investments, as seen in DWS’s Fintech fund incorporating an Ethereum exchange-traded note, Jupiter’s situation highlights the urgent necessity for a standardized regulatory approach across the EU. These regulatory disparities underscore the challenges faced by fund managers navigating the complex landscape of cryptocurrency investments.
XRP Price Remains Stable
Despite Jupiter Asset Management’s withdrawal, the price of XRP has remained stable, trading at $0.574, which reflects a 3% increase over the past 24 hours. This demonstrates that, despite challenges, the crypto market remains strong, emphasizing the need for clear and consistent guidelines for a stable investment environment.
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